AAR CORP (AIR) Stock Fundamental Analysis
USA - NYSE:AIR - US0003611052 - Common Stock
82.25 USD
-1.35 (-1.61%)
82.25 USD
0 (0%)
Overall AIR gets a fundamental rating of 5 out of 10. We evaluated AIR against 71 industry peers in the Aerospace & Defense industry. AIR has only an average score on both its financial health and profitability. AIR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
In the past year AIR had a positive cash flow from operations.
In the past 5 years AIR has always been profitable.
In the past 5 years AIR always reported a positive cash flow from operatings.
1.2 Ratios
AIR has a Return On Assets (0.99%) which is comparable to the rest of the industry.
The Return On Equity of AIR (2.31%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 8.79%, AIR is doing good in the industry, outperforming 77.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AIR is in line with the industry average of 8.48%.
The last Return On Invested Capital (8.79%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROIC | 8.79% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
1.3 Margins
With a Profit Margin value of 1.01%, AIR perfoms like the industry average, outperforming 43.66% of the companies in the same industry.
AIR's Profit Margin has improved in the last couple of years.
AIR has a Operating Margin of 9.31%. This is comparable to the rest of the industry: AIR outperforms 57.75% of its industry peers.
AIR's Operating Margin has improved in the last couple of years.
The Gross Margin of AIR (19.04%) is worse than 67.61% of its industry peers.
In the last couple of years the Gross Margin of AIR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% |
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIR is destroying value.
The number of shares outstanding for AIR has been increased compared to 1 year ago.
AIR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AIR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.36 indicates that AIR is not in any danger for bankruptcy at the moment.
AIR has a Altman-Z score of 3.36. This is comparable to the rest of the industry: AIR outperforms 46.48% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that AIR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, AIR is doing worse than 70.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.36 |
ROIC/WACC0.91
WACC9.7%
2.3 Liquidity
A Current Ratio of 2.91 indicates that AIR has no problem at all paying its short term obligations.
AIR has a Current ratio of 2.91. This is in the better half of the industry: AIR outperforms 61.97% of its industry peers.
AIR has a Quick Ratio of 1.31. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
AIR's Quick ratio of 1.31 is in line compared to the rest of the industry. AIR outperforms 42.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.83% over the past year.
The Earnings Per Share has been growing by 12.75% on average over the past years. This is quite good.
Looking at the last year, AIR shows a quite strong growth in Revenue. The Revenue has grown by 17.59% in the last year.
AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
3.2 Future
The Earnings Per Share is expected to grow by 15.89% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.07% on average over the next years.
EPS Next Y15.97%
EPS Next 2Y16.54%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue Next Year10.56%
Revenue Next 2Y8.87%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.92 indicates a rather expensive valuation of AIR.
91.55% of the companies in the same industry are more expensive than AIR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.13. AIR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.53, the valuation of AIR can be described as correct.
Based on the Price/Forward Earnings ratio, AIR is valued cheaper than 91.55% of the companies in the same industry.
AIR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 92.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.24 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AIR has a very decent profitability rating, which may justify a higher PE ratio.
AIR's earnings are expected to grow with 15.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)1.56
EPS Next 2Y16.54%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
No dividends for AIR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.25
-1.35 (-1.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change-0.13%
Ins Owners2.4%
Ins Owner Change0.98%
Market Cap3.25B
Revenue(TTM)2.86B
Net Income(TTM)28.90M
Analysts82
Price Target88.82 (7.99%)
Short Float %2.93%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)8.56%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)7.56%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)4.59%
EPS beat(12)12
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)4.6%
Revenue beat(2)2
Avg Revenue beat(2)6.85%
Min Revenue beat(2)6.33%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)3.4%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)0%
PT rev (3m)9.19%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)1.31%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)3.66%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.92 | ||
| Fwd PE | 15.53 | ||
| P/S | 1.14 | ||
| P/FCF | N/A | ||
| P/OCF | 332.02 | ||
| P/B | 2.6 | ||
| P/tB | 6.77 | ||
| EV/EBITDA | 13.24 |
EPS(TTM)4.13
EY5.02%
EPS(NY)5.3
Fwd EY6.44%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.25
OCFY0.3%
SpS72.25
BVpS31.58
TBVpS12.14
PEG (NY)1.25
PEG (5Y)1.56
Graham Number54.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROCE | 11.13% | ||
| ROIC | 8.79% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 13.64% | ||
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% | ||
| FCFM | N/A |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 64.78% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 3.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.36 |
F-Score6
WACC9.7%
ROIC/WACC0.91
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
EPS Next Y15.97%
EPS Next 2Y16.54%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
Revenue Next Year10.56%
Revenue Next 2Y8.87%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
EBIT growth 1Y75.48%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year36.67%
EBIT Next 3Y17.93%
EBIT Next 5YN/A
FCF growth 1Y24.63%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y545.46%
OCF growth 3Y-21.7%
OCF growth 5YN/A
AAR CORP / AIR FAQ
What is the ChartMill fundamental rating of AAR CORP (AIR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AIR.
Can you provide the valuation status for AAR CORP?
ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.
Can you provide the profitability details for AAR CORP?
AAR CORP (AIR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of AAR CORP (AIR) stock?
The Price/Earnings (PE) ratio for AAR CORP (AIR) is 19.92 and the Price/Book (PB) ratio is 2.6.
What is the financial health of AAR CORP (AIR) stock?
The financial health rating of AAR CORP (AIR) is 4 / 10.